Forum Discussion

SMM's avatar
SMM
Experienced Cover User
6 years ago

Financing insurance

Hi We financed our PI insurance last year. I have a question re the unexpired interest account please. Premium paid was $25,650 + gst (plus prof fees ad stamp duty), totalling $30,010 incl GST I set u...
  • GDay53's avatar
    6 years ago

    SMM

     

    Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

     

    Have a read of the attached Bank Loan and Chattel Mortgage document.

    It talks about how to set up a Bank Loan for a motor vehicle and record the Interest and the payments.

    Yes it is for a motor vehicle, but the principle is the same for all loans and a loan for funding insurance is treated the same way.

    Do a Journal for the original purchase and include everthing in this journal.

    Then do Spend Money for the payment recording the Interest as a positive and a negative - this effectively moves the interest from the Liability to the Other Expense account.

    Hope this helps.